It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
The Federal Reserve is carefully considering interest rate cuts while balancing concerns about inflation. Having previously made mistakes by prematurely loosening policy, the central bank aims to avoid repeating those errors. While the economy is showing signs of growth, officials recognize the risks of allowing inflation to persist for too long. Therefore, they may take a cautious approach to rate adjustments, keeping them higher for a longer period to ensure price stability.
Despite ongoing inflation, certain categories are experiencing price drops. Egg prices have plummeted by 17%, while health insurance, laundry equipment, and car rentals have also seen significant declines. While the Federal Reserve aims for 2% inflation, core inflation remains elevated at 3.8%, indicating that it will take time to bring prices under control. Despite the challenges, real wages have risen since 2019, and global inflation is expected to moderate in the future.
China experienced inflation in February (0.7% year-on-year) after months of deflation. Despite this, some analysts believe deflation still looms and consumers remain cautious. However, Shaun Rein of China Market Research Group suggests investors consider re-entering the Chinese market as valuations are low. China's economic challenges over the past year have led to declines in stock markets, but Rein believes long-term growth prospects are promising, especially in domestic neighborhood electric vehicle manufacturers.
